Civil Servant Salaries Unchanged for Two Years: What Lies Ahead in 2027?

The hopes of the state civil apparatus (ASN) to enjoy another salary increase in 2027 remain uncertain. The government has not yet given a clear signal regarding an adjustment to the basic salary of civil servants (PNS) in the initial drafting documents for the 2027 State Revenue and Expenditure Budget (APBN).

The last salary increase for PNS occurred in 2024 through Government Regulation (PP) Number 5 of 2024, signed on 26 January 2024. At that time, the government raised ASN salaries by 8% after no adjustments for four years. This means that in the last two years, the basic salary of PNS has not changed. Over the past decade, ASN salary increases have been relatively limited, occurring only three times: 5% in 2015, 5% in 2019, and 8% in 2024.

Referring to the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) document, which forms the basis for drafting the 2027 RAPBN, the government has indeed not specifically included a plan to increase the basic salary of ASN. However, the government emphasised that the direction of personnel expenditure policy in 2027 remains aimed at maintaining the purchasing power and welfare of ASN, including members of the TNI, Polri, and retirees.

"Maintaining the purchasing power and welfare of ASN/TNI/Polri and retirees, among others through the provision of holiday allowances (THR) and the 13th salary/pension, while maintaining budget efficiency and considering fiscal sustainability," the government stated in the updated KEM-PPKF 2027 document. This statement signals that the government is still prioritising the welfare protection of state apparatus. However, there is no certainty whether this step will be followed by an increase in basic salary next year.

The final decision regarding ASN salary policy is expected to be seen after the discussion of the 2027 RAPBN between the government and the House of Representatives (DPR) is completed. As in previous years, the policy direction is usually announced by the President in the speech delivering the RAPBN and Financial Note on 16 August. If the government decides not to raise the basic salary in 2027, the amount of ASN salaries will continue to refer to the current provisions based on PP Number 5 of 2024.

For rank I, the basic salary ranges from Rp1.68 million to Rp2.90 million per month. Rank II receives a salary of Rp2.18 million to Rp4.12 million. ASN in rank III earn a basic salary starting from Rp2.78 million to Rp5.18 million, while rank IV receives a salary between Rp3.28 million and Rp6.37 million per month, depending on length of service and rank level. With no certainty of a salary increase in the initial RAPBN 2027 documents, the attention of ASN is now focused on the President’s speech in mid-August, which could provide a clearer signal regarding the fate of millions of civil servants’ salaries next year.